Bitcoin prices fell as U.S. Treasury yields surged, with the two-year yield reaching 4.31% and the 10-year yield climbing to 4.66%, their highest levels in months. The increase in yields raises the opportunity cost of holding non-yielding assets like bitcoin, prompting investors to shift towards fixed-income securities offering better returns. Market sentiment was further dampened by geopolitical tensions, as the U.S. military deployed a B-1 bomber to target Iran-linked sites, signaling a potential escalation in military operations. Meanwhile, the odds of the Digital Asset Market Clarity Act passing dropped to 38% on Polymarket, following criticism from Senate Democrats over the latest draft's ethical provisions. The draft, released by Senate Republicans, includes ethics language endorsed by President Trump and the White House.